City Won’t Seek Federal Loan for Movie Theater

Oxnard officials have withdrawn their application for an $11-million federally sponsored loan that would have been used to build a downtown movie theater. But officials say the 14-screen project is still alive and would cost less without the federal loan.

The application was withdrawn last month after the city secured cheaper financing, said Councilman Tom Holden. Approval of the low-interest loan, supported by the U.S. Department of Housing and Urban Development, had been delayed for more than a year.

The city’s application was returned last fall after HUD found the city had not provided proper public review of the proposal. The city resubmitted its application this year, but withdrew it two weeks ago when alternative financing with fewer conditions was arranged, Holden said.

He said the $12-million project, anchored by a 2,500-seat theater, is still alive, adding he will ask for an update on why a Burbank developer and Newport Beach movie theater operator have not signed off on it.